rnm alert vol lviii oct 2013 - final alert vol... · on the indirect tax front, delhi value added...

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ISSUE NO.58 OCTOBER, 2013

RNM ALERT

Thinking of the Bottom Line – Think of Us

Dear Readers, The Indian economy grew at a rate of 4.4% during the first quarter (April to June) of fiscal year 2013-14 with the Prime Ministers Economic Advisory Council (PMEAC) sticking to their aggregate growth projection for the year at a little over 5%. On the foreign exchange front, from $294 billion at the start of April this year,

India’s forex reserves had slid 6.8 per cent to $274 billion as on September 6. Since then, backed by several steps taken by Reserve Bank of India (RBI) to boost inflows, these had risen 3.2 per cent to almost $283 billion by the week ended October 25. However, India’s headline inflation, measured by the Wholesale Price Index (WPI) jumped to 7% in October compared to 6.46% in the previous month of September due to high prices of onion and vegetables. Team RNM is of the view that even in these times of relative slowdown, certain sectors such as Healthcare, Food & Agri (including Restaurants), Warehousing, Cable television and other sectors which have a particular focus on Tier II and Tier III cities shall continue to perform well above the mean for the economy. On the indirect tax front, Delhi Value Added Tax (DVAT) Audit Report submission date has been extended upto 02.12.2013 and the Central board of Excise & Customs (CBEC) has amended Mega Exemption Notification No. 25/2012 (Notification No. 14/2013-ST Dated 22.10.2013). The minimum wages in the National Capital Territory of Delhi have increased by approximately 5% w.e.f. October 1, 2013. We wish all our readers, happy reading and would love to invite feedback and comments on our RNM Facebook page.

Regards, CA U.N. Marwah

For and behalf of the RNM Alert Editorial Board

Issue No. 58: October, 2013 of 20

CONTENTS Direct Tax

- Case Laws

- Definition of transfer 4 - Income deemed to accrue or arise in India 4 - Income which do not form part of Total Income 4 - Profit & Loss from Business and Profession 4 - Capital Gain 5 - Minimum Alternate Tax 5 - Income escaping assessment 5 - Tax Deducted at Source 5 - Appeal to Appellate Tribunal 5-6 - Mode of taking or accepting certain loans & deposits 6 - Penalties 6 - Others 6 - Wealth Tax 6

Indirect Tax Service Tax

- Case Laws - Vat on works contract 7 - Export of service 7 - Monetary limit for appeals 7 - Service tax paid under central excise is valid payment 8 - Interest on delayed refund of cenvat credit 8 - Verification of documents of Cenvat credit 8 - Subsidy is not consideration for service 8 - Belated claim of Cenvat credit 8 - Payment of service tax under protest 8 - Condonation of delay in filing of appeal 8 - Housekeeping service is input service eligible for credit 9 - No suppression if payment not made as Matter under Litigation 9 - Abatement in respect of GTA available to service receipient 9


DIRECT TAX DIRECT TAX

RBI Updates - Circular

- FEMA Regulation, 2013 10

Corporate Finance - Latest News

- Private Equity 11-13 - Mergers & Acquisition 13-16 - Venture Capital 17-19


DIRECT TAX Case Laws Definition of Transfer Sec 2(47) - There was no occasion for section 2(47) to apply where no possession of factory land was given by assessee under Joint Development Agreement and further no construction activity had commenced during year under consideration. [Source: CIT v. Eastern Ceramics Ltd (2013) 38 taxmann.com 68 (Bombay)]

Sec 2(47) - Where assessee, owner of plot, entered into a development agreement with developer in terms of which he was entitled to receive certain amount in cash and a furnished flat, assessee was liable to pay capital gain tax in year in which said joint development agreement was signed and not afterwards. [Source: Hussan Lal Puri v. ITO [2013] 38 taxmann.com 7 (Chandigarh - Trib.)]

Residential Income Sec 6 - Where status of assessee was a non-resident, fact that assessee was already employed before leaving India should not affect his residential status. [Source: ACIT v. Raj Jain (2013) 38 taxmann.com 133 (Delhi - Trib.)]

Income Deemed to accrue or arise in India Sec 9 - Sum paid to NR for canvassing business abroad is not taxable in India even after amendment to section 9(2) by Finance Act, 2010. [Source: ACIT v. Capricorn Food Products India Ltd. (2013) 38 taxmann.com 158 (Chennai - Trib.)]

Income which do not form part of total Income Sec 10A/10B - Unabsorbed depreciation (and business loss) of same (s. 10A/10B) unit brought forward from earlier years have to be set off against the profits before computing exempt profits [Source: Himatasingike Seide Ltd vs. CIT (Supreme Court) Civil Appeal No. 1501/2008]

Profit & Gain from Business & Profession Sec 30 - Expenditure for laying/fixing marble flooring of entire factory building cannot be allowed as current repairs. [Source: Surinder Madan v. ACIT (2013) 37 taxmann.com 388 (Delhi)]

Sec 31 - 'Replacement' and 'current repairs' do not go hand in hand and, therefore, replacement expenditure cannot be said to be 'current repairs'. [Source: Super Spinning Mills Ltd.v.ACIT[2013] 37 taxmann.com 290 (Madras)]

Sec 32(1) - Tenancy rights cannot be construed as 'intangible' assets falling within meaning of Explanation 3 to section 32(1) and, therefore, there is no question of allowing depreciation on said rights. [Source: Dabur India Ltd. v. ACIT (2013) 37 taxmann.com 289 (Mumbai - Trib.)]


Capital Gain Sec 43(5) -Loss on forward foreign exchange contracts is incidental to the exports business and not a “speculation loss“. However, if the contract is prematurely cancelled, the assessee has to justify the loss. [Source: London Star Diamond Company (I) P. Ltd vs. DCIT (ITAT Mumbai)]

Sec 45 - Where assessee by purchasing shares of company also acquired a right to manage it and, moreover, it kept those shares for a period of 31 months before selling them, it was to be concluded that entire transaction was on capital account and, thus, income arising from sale of shares was to be taxed as 'capital gains'. [Source: Accra Investments (P.) Ltd. v. ITO (2013) 38 taxmann.com 188 (Bombay)] Sec 45 - Total consideration received or accrued has to be assessed to capital gain tax in year of transfer. [Source: Sukhdev Singh v. ITO (2013) 38 taxmann.com 156 (Chandigarh - Trib.)]

Sec 48 - In computing long term capital gains on sale of inherited asset, indexed cost of acquisition is to be computed with reference to year first held by previous owner. [Source: CIT v. Gautam Manubhai Amin (2013) 38 taxmann.com 42 (Gujarat)]

Minimum Alternate Tax Sec 115JB - Amount disallowable under section 14A is covered under clause (f) of Explanation 1 to section 115JB(2) and, thus, said amount has to be added back while computing amount of book profits. [Source: Dabur India Ltd. v. ACIT (2013) 37 taxmann.com 289 (Mumbai - Trib.)

Income Escaping Assessment Sec 147 - If in original assessment, after appreciating assessee's response to specific queries, section 10B deduction was reduced and further, in subsequent rectification same issue was again considered, reassessment after 4 years to withdraw section 10B deduction was illegal due to change of opinion. [Source: Moser Baer India Ltd. v. DCIT (2013) 38 taxmann.com 44 (Delhi)]

TDS Sec 192 - Where assessee as part of its plan provided to its employees meal vouchers/coupons, which were useable at centres within campus and also at certain eating joints, disbursement of meal coupons by assessee to employees did not require tax to be deducted thereon under section 192. [Source: ITO v. Goodrich Aerospace Services (P.) Ltd. (2013) 38 taxmann.com 37]

Appeal to Appellate Tribunal Sec 254 - Tribunal has no power to dismiss appeal for non-appearance of appellant. It has to deal with the merits. An application for recall of an ex-parte dismissal order is under s. 254(2) & must be filed within 4 years from the date of the order. The Tribunal must permit “mentioning” of matters.


[Source: Bharat Petroleum Corporation Ltd vs. ACIT (Bombay High Court) Writ Petition No. 1740/2013]

Mode of taking or accepting certain Loans & Deposits Sec 269SS - Where assessee received certain amount by way of subscription money for allotment of debentures under optionally fully convertible debentures scheme, subscription collected under said scheme was neither loan nor deposit within meaning of section 269SS. [Source: DCIT, v. Sahara India Commercial Corpn. Ltd. (2013) 38 taxmann.com 76 (Delhi)]

Penalties Sec 271(1) - Voluntary disclosure does not release assessee from mischief of penal proceedings under section 271(1)(c) [Source: MAK Data P. Ltd vs. CIT (Supreme Court) [2013] 38 taxmann.com 448 (SC)]

Sec 271(1)(c) - Where Tribunal set aside penalty order passed under section 271(1)(c) holding that penalty was not leviable in as much as assessee itself had disclosed additional income before passing of assessment order, no substantial question of law arose from said order. [Source: CIT v.Deewan Tourism Ltd. [2013] 38 taxmann.com 47 (Allahabad)]

Others Law of jurisdictional High Court is not binding if there is a later contrary judgement of non-jurisdictional High Court. [Source: Prakash Vasantbhai Golwala vs. ACIT (ITAT Ahmedabad) ITA No. 558/Ahd/2013]

It appears from the record that in several assessment years, the Revenue accepted the order of the Tribunal in favour of the assessee and did not pursue the matter any further but in respect of some assessment years the matter was taken up in appeal before the Bombay High Court but without any success. That being so, the Revenue cannot be allowed to flip-flop on the issue. [Source: CIT vs. Excel Industries Ltd (Supreme Court) 38 taxmann.com 100]

Wealth Tax Sec 2(ea) of Wealth Tax Act, 1957 - Factory : Scope of section 2(ea) does not include 'urban land' but once land so held is part of industrial undertaking or factory, it ceases to have independent character as urban land; it is part of industrial undertaking. [Source: DCIT(OSD) v. HSIL Ltd. (2013) 38 taxmann.com 45 (Kolkata - Trib.)]


INDIRECT TAX

Service Tax Case Law VAT on Works Contract Building/Construction contract is a 'works contract' and goods like cement, concrete, steel, bricks etc. are liable to VAT even if they lose their identity as goods If contract with flat purchaser is entered only after construction is completed, goods used in construction cannot be deemed to have been sold by builder since at that time there was no purchaser and no VAT can be levied Value of goods chargeable to sales-tax/VAT has to be value of goods at time of incorporation of goods in works even though property passes on later; value addition made to goods transferred after agreement is entered into with flat purchaser can only be made chargeable to tax by State Government [Source: [2013] 38 taxmann.com 98 (SC) SUPREME COURT OF INDIA Larsen & Toubro Ltd. v. State of Karnataka]

Export of Services Commission agent services provided to foreign company for canvassing their products in market in India amounts to 'export of service' [Source: Buhler India (P.) Ltd. v. Comm. of Ser. Tax,Bangalore, [2013] 37 taxmann.com 356 (Bangalore - CESTAT)]

Monetary Limit for Appeal If quantum of penalty reduced by Commissioner (Appeals) is below monetary limit for appeal to Tribunal, Department's appeal against such reduction is not maintainable [Source: Comm. of Cent. Ex., Jaipur –I v/s BSNL., [2013] 37taxmann.com 291 (New Delhi - CESTAT)]


Service Tax Paid under Central Excise is Valid Payment Though assessee had paid 'service tax' under 'central excise' registration and challans did not contain any unit-wise reference, but, since total service tax paid tallied with sum demanded by department, demand was liable to be set aside [Source: Cargil India (P.) Ltd. v/s Comm. of Cent. Ex., Rajkot, [2013] 37 taxmann.com 399 (Ahmedabad - CESTAT)] Interest on Delayed Refund of CENVAT Credit If department unjustly withholds rightfully earned Cenvat credit, assessee is entitled to interest and department cannot cite absence of any specific provision. [Source: Hindustan Coca-Cola Beverages (P.) Ltd. v. Union of India* [2013] 37 taxmann.com 329 (Gujarat)]

Verification of Documents of CENVAT Credit If assessee wants to avail credit as provided for under law, they are bound to produce relevant documents on strength of which they want to take credit so that department can verify same [Source: Bharti Cellular Ltd. v. Comm. of Service Tax, Mumbai -II, [2013] 37 taxmann.com 354 (Mumbai - CESTAT)] Subsidy is not a Consideration for Service Buffer-stock subsidy received by sugar factories is for storage of sugar by sugar factory for themselves, which amounts to self-service; since subsidy is not a consideration for services rendered, service tax would not be leviable thereon. [Source: Comm. of Cent. Ex., Pune -II, NT v. Shree Datta SSK Ltd., [2013 37taxmann.com 424(Mumbai - CESTAT)]

Belated Claim of CENVAT Credit An assessee may take credit even prior to registration, but, if he chooses to take credit after registration, such credit cannot be disallowed as belated [Source: Effective Teleservices (P.) Ltd. v/s Comm. of Cent. Ex., Ahmd -III, [2013] 38 taxmann.com 94 (Ahmd-CESTAT)] Payment of Service Tax Under Protest Payment made, when assessee has been challenging earlier levy of duty, is deemed to be under protest for subsequent period also; and, accordingly, there is no time-limit for refund of payment made under such deemed protest [Source: Comm. of C. Ex., Chennai-II Commissionerate v/s Electro Steel Castings Ltd.,[2013]37taxmann.com226 (Madras)]

Condonation of Delay In Filing of Appeal Where assessee had gone abroad and only after their return from abroad, they could get appeal documents prepared, delay caused in filing appeal on that account was condonable [Source: Rahim Travels v. Comm. of Cent. Excise, Nagpur, [2013] 37 taxmann.com 244 (Mumbai - CESTAT)]


Housekeeping Service is Input Service Eligible for Credit Expenses incurred on housekeeping and cleanliness of factory are incidental to manufacturing activity and are eligible for input service credit [Source: Suzuki Powertrain India Ltd. v. Comm. of Cent. Ex., Delhi - III, Gurgaon,[2013] 37 taxmann.com 245(New Delhi-CESTAT)] No Suppression if Payment Not Made as Matter Under Litigation Where issue of levy of service tax was under litigation and even retrospective amendments had to be resorted to and matter was within knowledge of department, there was no fraud or suppression etc. on part of assessee with intent to evade taxes so as to warrant invocation of extended period of limitation. [Source: Banco Products India Ltd. v. Comm. of Cent. Ex., Vadodara-II, [2013] 37 taxmann.com 293 (Ahmd.-CESTAT)]

Abatement in Respect of GTA Available to Service Recipient Abatement in respect of GTA service is available to service recipient and there is no requirement for GTA to make declaration on consignment note/GRs that it has not availed CENVAT credit [Source: Benara Bearings & Pistons Ltd. v. Comm. of Cent. Ex., Kanpur,[2013]37taxmann.com314(New Delhi – CESTAT])


RBI UPDATES Circular/Notification/Guidance Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Sixteenth Amendment) Regulations, 2013 The Reserve Bank of India hereby makes the amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000). These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by A Person Resident outside India) (Sixteenth Amendment) Regulations, 2013 and shall be deemed to have come into force from June 3, 2013. A new definition of ‘Group Company' has been introduced under the said regulations. Group Company means two or more enterprises which, directly or indirectly, are in a position to:

(i) exercise twenty-six per cent, or more of voting rights in other enterprise; or (ii) appoint more than fifty per cent, of members of board of directors in the other enterprise.

[Source: Notification No.FEMA.292/2013-RB dated 04th October, 2013]


CORPORATE FINANCE

Latest News Private Equity Trinity Sells Stake In Uppal Group's SEZ Project Trinity Capital Plc has exited its investment in a SEZ project, Luxor Cyber City, which was being developed in Gurgaon by the Uppal group, by selling the 33% stake which it held to Uppal Group for 9.2 Mn pounds. The exit is made at a deep discount incurring a loss of R200 Cr on its investment. [Source: Economic Times, October 3, 2013] Lotus Greens Gets Investment From Red Fort Red Fort Capital will be investing R1000 Cr in various projects of real estate developer, Lotus Greens. Red Fort Capital will pick up about 50% stake in these projects from the conceptualization stage. These projects will be developed in residential space that will be self liquidating and help provide exit for the PE firm in the next 4-5 five years from the start of the projects. [Source: Economic Times, October 7, 2013] Flipkart Gets Another Round Of Funding Merely after three months of the $200 Mn fund raise, online market place, Flipkart has raised another $160 Mn in its latest round of funding from its existing investors, Tiger Global Management Llc, as well as new investors Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital Management, taking the fifth round of funding to $360 Mn. The funds will be used to further build Flipkart's technology and supply chain capabilities, develop the talent pool and enhance the end-user experience. [Source: Business Today, October 9, 2013] Medi Assist Gets Investment From IDFC Alternative Bangalore-based Medi Assist Healthcare has received an investment of R125 Cr from IDFC Alternatives. The funds will be utilized for developing its proprietary technology platform further, while the rest will be used for acquisitions. Medi Assist is a health benefits administrator offering services in wellness, pharmacy programme management, medical network management and benefits administration. It enables cashless hospitalization at pre designated points of healthcare delivery like hospitals and nursing homes. [Source: Economic Times, October 15, 2013] Eka Software Gets Investment From Silver Lake, Nexus VP Bangalore-based Eka Software Solutions, a company that builds software for commodity trading has raised $41 Mn from Silver Lake Kraftwerk, along with existing investor Nexus Venture Partners. The


company would be utilizing the fresh capital for expansion purposes and to acquire new functional capabilities. [Source: Iamwire, October 17, 2013] M.A Yusuffali Acquires Stake In Dhanlaxmi Bank NRI businessman and MD of Abu Dhabi-headquartered EMKE Group, M.A Yusuffali has bought 4.99% stake in another Kerala based bank, Dhanlaxmi Bank, taking his investment in the state’s banking sector close to R510 Cr. [Source: Economic Times, October 21, 2013] Actis Invests In Symbiotec Pharmalab PE firm Actis has announced its investment of $48 Mn in Symbiotec Pharmalab for a significant stake. IDFC Capital, a unit of IDFC Ltd advised Symbiotec on the deal. Symbiotec Pharma is a steroid-hormone active ingredient producer, and the second largest player in Asia serving clients which include both large multinationals as well as generic pharma companies, to manufacture high quality medications, including treatments for inflammation, asthma, dermatology, immune functions, and infertility. [Source: Reuters, October 22, 2013]

HomeShop18 Raises Funds From Existing Investors Network18 owned e-commerce company Homeshop18 has raised $14 Mn from GS Home Shopping, OCP Asia and Network18. GS Home will invest $11 Mn whereas the remaining amount will be invested by OCP Asia and Network18 which will together value HomeShop18 at $360 Mn. HomeShop18 started out as a shopping television channel in 2008 and diversified into e-commerce as it picked up. It provides an integrated virtual shopping experience on Internet, Television and Mobile through HomeShop18.com and the 24x7 channel. [Source: Next Big What, October 23, 2013] Komli Media Gets Funding From Peepul Capital, Existing Investors Komli Media has raised $30 Mn from new investor Peepul Capital along with existing investors Norwest Venture Partners, Nexus Venture Partners, Helion Venture Partners and Draper Fisher Jurvetson. Komli Media provides ad network platform with solutions across performance marketing, social media, video advertising, audience targeting, rich media, online audience measurement and brand impact measurement. [Source: Iamwire, October 24, 2013]


PCR Investment Raises Funds From KKR Chennai-based Apollo Hospitals has entered into partnership with PE fund KKR to raise R550 CR to repay debt and build more hospitals. KKR will make investments in Apollo Hospital’s holding company PCR Investments. [Source: Financial Express, October 29, 2013] Sequoia, Matrix Partners Invest In Cloudnine Sequoia Capital along with existing investor Matrix Partners, has invested R100 Cr in Bangalore based Cloudnine Hospitals, which will be utilized to set up 10 new centres over the next two years. Founded in 2007, Cloudnine Hospitals is a venture of Kids Clinic, owned by Kishore Kumar and Scrips N Scrolls India, a property development and investments company. The hospital runs a network of five specialty maternity care hospitals. [Source: Economic Times, October 31, 2013] Vastushodh Projects Gets Funding From Avenue Venture Partners Vastushodh Projects is set to raise project level funding from Avenue Venture Partners. Avenue Venture Partners Real Estate Fund has decided to take project level equity in affordable housing projects of Vastushodh Projects and has already invested R20 Cr in an 'Anandgram' project that will come up on a 22 acres plot on Pune - Solapur highway. [Source: Economic Times, October 31, 2013] Fulcrum Venture Achieves First Close Of Fund II Early stage venture fund Fulcrum Venture India, has announced the first closure of its Fulcrum Venture India Fund II, mopping up R60 Cr. The fund is weighted towards opportunities within healthcare and wellness sector with a ticket size of R 5-15 Cr. [Source: Business Line, October 31, 2013]

Merger & Acquisition Exova Acquires Ashok Leyland's Defiance Testing Askok Leyland has concluded the sale of its Detroit based subsidiary, Defiance Testing and Engineering Services, to Exova Group. The move is in line with its plan to raise around R500 Cr through stake sale in its non-core entities. The flagship company of the Hinduja Group has been


planning divesture early this year to cut the debt pile of the company which currently stands at around R3,500 Cr with an additional R1,500 Cr of short-term loan. [Source: BSE Filings, October 1, 2013] Sahara Group Buys Oakley Court Oakley Court, the country house hotels in Europe has been acquired by the Indian conglomerate Sahara Group. The business group has bought the property for R256 Cr which will be used as their UK headquarters. The Oakley Court is a country house in the Gothic style, situated on the banks of the river Thames between Maidenhead and historic Windsor in Berkshire. It is the nearest luxury 4 star hotel to Dorney Lakes, Eton – The home of the Olympic rowing 2012. The 19th century mansion sits in over 35 acres of immaculately landscaped gardens. [Source: Economic Times, October 3, 2013] Zee Media Acquires Prakash Jha's Maurya TV Zee Media Corporation has received an approval for 100% acquisition of Maurya TV, the television venture of filmmaker Prakash Jha. The financial details of the transaction were not disclosed. Maurya TV is a regional infotainment channel engaged in the business of broadcasting of a regional news and current catering to the the Bihar-Jharkhand belt, which went live in January 2010. [Source: BSE Filings, October 4, 2013] Pennar Industries Acquires Bailey Hydropower Andhra Pradesh based Pennar Industries Ltd has acquired assets of Bailey Hydropower, a Chennai-based hydraulic products and systems manufacturer. The acquisition would help Pennar to enter into a new segment. Established in 1988, Pennar is a leading engineering company making a host of steel based products. [Source: Business Line, October 7, 2013] Godrej Acquires Stake In B:Blunt Godrej Group through its subsidiary Godrej Consumer ProductsLtd is acquiring 30% stake in premier hair salon company, Bhabani Blunt Hair Dressing Private Limited (B:blunt). B:blunt was launched in 2005 by Adhuna Bhabani Akhtar, wife of Bollywood celebrity Farhan Akhtar and Osh Bhabani. [Source: BSE Filings, October 7, 2013] Tata To Acquire AES India's Wind Biz Tata Power is acquiring AES Saurashtra Windfarms Pvt Ltd, the local wind business of Virginia-based AES’s Indian arm. The deal would hike Tata’s current capacity by 10% taking it to 437 MW. The deal value was not disclosed. [Source: Bloomberg, October 8, 2013]


Lixil Corp Acquires Majority Stake In Star Alubuild Japanese building materials company, Lixil Corporation has acquired 70% stake in DLF arm, Star Alubuild through its Singapore subsidiary, Lixil Asean Pte. Ltd from DLF subsidiaries and Romin Malhotra, the founder of Star Alubuild for R 79.8 Cr to foray into Indian market. [Source: Times of India, October 9, 2013] ONGC Hikes Stake In Brazilian Block State run Oil & Natural Gas Corporation, through its overseas armONGC Videsh Limited, is hiking its stake in the offshore block in the Campos Basin of Brazil, by acquiring additional 12% stake held by Brazilian multinational energy corporation, Pertrobras for a consideration of $526 Mn. [Source: Economic Times, October 14, 2013] Fortis Sells Quality Healthcare To Bupa In a move to trim its debt and strengthen its balance sheet, Fortis is raising $355 Mn by selling 100% stake in Altai Investments Limited, the holding company of Quality Healthcare, Honk-Kong, to British medical services group, Bupa. The sale is in line with the strategy to intensify its focus on core hospital and diagnostic business in India, while it continues to retain its presence in Singapore, Mauritius, Sri Lanka and Dubai. [Source: Economic Times, October 15, 2013] Phoenix Mills Hikes Stake In OffBeat Developers Phoenix Mills has hiked its stake in Offbeat Developers Private Limited by acquiring 23.94% stake of IL&FS Financial Services. The purchase takes Phoenix Mills holding in ODPL to 53.23% making it a subsidiary of Phoenix. [Source: BSE Filings, October 17, 2013] Middleby Acquires Food Service Equipment Supplier Celfrost Gurgaon-based Celfrost Innovations has been acquired by Middleby Corp, QSR Web states. The acquisition was carried out by the company's new Indian unit, Middleby Commercial Food Innovations Pvt. Ltd. The acquisition of Celfrost's refrigeration unit complements Middleby's warming and cooking equipment segment. Middleby aims to tap the growing Indian market while establishing its products. [Source: Deal Curry, October 17, 2013] Bharti Airtel Hikes Stake In Qualcomm's Wireless Business Service Bharti Airtel has raised its stake in Qualcomm’s Wireless Business Service to 93.45% for R875 Cr. Wireless Business Services is the JV formed between Qualcomm, Global Group and Tulip Telecom to offer Broadband services in India. [Source: The Indian Express, October 18, 2013] PVR Sells Anupam Cine Complex Multiplex chain operator PVR has sold its iconic Anupam Cine Complex in South Delhi for R52 Cr to an undisclosed buyer and also entered into an agreement with the same to lease back the property to


operate the multiplex. The funds generated from the sale and lease would help the company to fund its expansion plans and future projects. [Source: BSE Filings, October 21, 2013] Publicis Groupe Buys Beehive Communication French advertising and PR giant, Publicis Groupe has announced the acquisition of Mumbai headquartered, Beehive Communication, accelerating its growth in the emerging economy. Beehive Communication was founded in 2003, provides creative integrated solutions: reputation management, media, digital, brand activation and research. [Source: Deal Curry, October 22, 2013] Banswara Syntex Raises Stake In JV - Carreman Fabrics Textile manufacturing company, Banswara Syntex Limited has raised its stake to 80% in its JV Carreman Fabrics India Limited. [Source: BSE Filings, October 22, 2013] Punj Lloyd's Arm Offloads Stake In Olive Group Punj Lloyd Pte Ltd, Singapore based wholly owned subsidiary of Punj Lloyd Ltd has divested its entire stake in Dubai-based Olive Group Capital Ltd for about $20 Mn. The company offloaded 27.78% stake in Olive Group. Dubai-headquartered Olive Group is a leading provider of innovative safety, security and technology solutions. [Source: Deal Curry, October 24, 2013] SBI Acquires Stake In Equifax Credit Information Services The State bank Of India has acquired stake in an India-based credit information company, Equifax Credit Information Services. However the details of the investment were not disclosed. This will give SBI membership on the Board of ECIS, besides an interest in the credit bureau. [Source: Business Line, October 28, 2013] Hatsun Agro Buys Jyothi Dairy Chennai-based private sector dairy Hatsun Agro Product Limited has acquired Hyderabad based Jyothi Dairy in a move to expand its business in Andhra Pradesh. However the cost of acquisition is yet to be announced. [Source: Deal Curry, October 30, 2013]


Venture Capital Matrix Partners Invests In Online Booking Portal Stayzilla Chennai-based online hotel booking portal Stayzilla.com has raised funds from Matrix Partners India. The fund has acquired a minority stake in the company. The amount will be utilized to strengthen the team, increase the startups network to over 15,000 hotels and enhance customer service. The startup operates an online platform to research and reserve "value hotels" and focuses on tier II towns. [Source: Next Big What, October 3, 2013] Aavishkaar Goodwell , Asia Pragati Invests In Swarna Pragati Financial Inclusion fund, Aavishkaar Goodwell and existing investor, Asia Pragati have invested R21 Cr in Swarna Pragati Housing Microfinance. The funds would be channelized to boost its next stage of growth and to strengthen its presence in Maharashtra, Orissa, Karnataka and Tamil Nadu, as well as to expand into other states. [Source: Deal Curry, October 3, 2013] Arohan Financial Gets Investment From Existing Investors IntelleCash Microfinance’s Arohan Financial Services has raised R22 Cr from Aavishkaar Goodwell II, Michael & Susan Dell Foundation and a new investor Swaminathan Ankleshwaria Aiyar. The equity infusion would help the MFI to expand its presence in low income state. [Source: Deal Curry, October 4, 2013] Evomo Gets Investment From CIIE The Centre for Innovation Incubation and Entrepreneurship (CIIE) at the IIM has invested into rural transportation enterprise Evomo Research & Advancement Pvt. Ltd. Founded by Abhinav Das, Evomo Research & Advancement Pvt. Ltd. was launched in 2010. It is an organization working towards providing an affordable rural transportation solution. [Source: Economic Times, October 8, 2013]


IndianMoney.com Raises Funds From Hyderabad Angels Financial education company, IndianMoney.com closed its first institutional funding from Hyderabad Angels. IndianMoney.com empowers people with all the information it needs to know before buying any financial product. It provides free financial advice / education to ensure retail customers not misguided while buying any kind of financial product. [Source: Deal Curry, October 8, 2013] Sequoia Invests In Idea Device Sequoia Capital has made R27.4 Cr ($4 Mn) investment in Bangalore based - Idea Device, an information technology process automation startup. Founded in 2009 by Saju Pillai and Aaditya Sood, Idea Device offers data centre management products. It automates processes in the data centres so that systems work faster, with fewer faults and greater security and everything can be viewed and managed from a single window. [Source: Economic Times, October 9, 2013] IDG Ventures, Inventus Capital Invest In Unbxd IDG Ventures, Inventus Capital have invested $2 Mn in Bangalore based web and search analytics, Unbxd. Unbxd provides the service of enhancing the search on e-commerce websites through their search interface 'Unbxd Human Search'. The search offers auto-complete options and the search adapts itself depending on the way users perform search. [Source: Business Line, October 10, 2013] Theramyt Novobiologics Raises Funds For Expansion Biopharma company - Theramyt Novobiologics has received R27.5 Cr from Aarin Capital, Accel Partners, IDG Ventures and Karnataka state government-backed KITVEN. Bangalore based Theramyte Novobiologics is working on developing therapies for diseases such as cancer, rheumatoid arthritis and diabetes. [Source: Economic Times, October 11, 2013] Software Security Startup Druva Raises SeriesC Funding Data Protection Software provider Druva has secured series C funding from Tenaya Capital and its existing investors Sequoia capital and Nexus Venture Partners. It has raised R152 Cr in its third round of funding for its inSync platform. Druva offers an integrated platform for endpoint backup, secure file sharing, data loss prevention and real-time analytics. [Source: Economic Times, October 17, 2013] Travel Planner Mygola Gets Investment From Helion Venture Helion Venture Partners has invested $1.5 Mn in travel planning startup Mygola.com. The startup has raised Series A round of funding with participation of existing investor Blumberg Capital. MyGola, the portal is a travel planning service that connects human guides with users, who then do all the online research for a trip [Source: iamwire, October 18, 2013]


Education Startup K2 Learning Secures Angel Funding Bangalore-based education startup, K2 Learning has raised R8 Cr in angel funding to develop tablet labs in 100 colleges. The tablets will have online coursework, games, activities and other data. The startup runs offline classes and also provides online help and content. [Source: iamwire, October 18, 2013] Intel Capital Invests In Two Startups - Savaari, Perptuuiti Intel Capital has invested $65 Mn in 16 technology companies that include two Indian start-ups. Intel Corporation owned VC firm made its first investment in the taxi aggregation space in India through Savaari and Perpetuuiti would be its second investment in India's data centre ecosystem. [Source: Deal Curry, October 23, 2013] Tata Capital Invests In Mitra Biotech Tata Capital’s Tata Capital Innovations Fund along with existing investors India Innovation Fund and Accel Partners, are investing about R40 Cr in Mitra Biotech, a Bangalore-based cancer care provider. [Source: Economic Times, October 24, 2013] Indventure Invests In TicketGoose Chennai based online bus ticketing portal, Ticketgoose has received a funding of R18 Cr from US based Indventure. Ticketgoose provides information like price, availability and booking facility for buses to more than 4500 destinations in South India and currently have more than 700 bus operators. [Source: Deal Curry, October 25, 2013]


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